The Anatomy of Investing

invested in either mutu‍

voiding Investment Information Overload

ACTIVE INVESTING SUMMARIZED

PASSIVE INVESTING SUMMARIZED

tax-loss harvesting strategy.

Most indices that passive investors use to invest in are market capitalization-weighted. What this means is that companies that have more market value have the greatest weight in the index. The market value is calculated by multiplying the share price by the number of shares that are outstanding.
This market capitalization bias results in you buying more of what is expensive and/or large in the index and less of what is inexpensive and/or small in the index.

Using the averaging in, rebalancing out methods are an effective way to manage risk in your portfolio.

A sound portfolio provides a diversified stream of income and dividends, and a growing source of both if structured appropriately.

Having some liquidity means you only need to make one decision: what to buy. If you have to make two decisions—what to sell to provide the cash to then fund the purchase—the chances of that purchase happening will drop considerably.

ALWAYS BUY ON SALE